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Banking Vocabulary

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

ATM stands for ______ and its function is to provide access to financial transactions.

a)

Automated Teller Machine

b)

Automatic Transaction Machine

c)

Automated Transfer Mechanism

d)

Automatic Teller Mechanism

2.

The term for the amount of money you have in your bank account is:

a)

Balance

b)

Credit

c)

Debt

d)

Loan

3.

A Bank Statement is:

a)

a document that summarizes all transactions in an account over a period of time.

b)

a type of loan provided by banks.

c)

a certificate of deposit.

d)

a financial plan for future expenses.

4.

A Canceled Check is:

a)

a check that has been paid and cleared by the bank

b)

a check that has been voided and cannot be used

c)

a check that is post-dated and not yet cleared

d)

a check that is lost or stolen

5.

A check is a written, dated, and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.

a)

A type of credit card

b)

A written order to a bank

c)

A form of digital payment

d)

A type of loan agreement

6.

A Check Cashing Store is a place where:

a)

you can deposit checks into a bank account

b)

you can cash checks without a bank account

c)

you can write checks to pay bills

d)

you can open a new bank account

7.

Compound Interest is:

a)

A type of interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

b)

A type of interest calculated only on the initial principal, not including any of the accumulated interest from previous periods.

c)

A fixed interest rate applied to the principal amount over a set period of time.

d)

An interest rate that changes based on the market conditions.

8.

The term for a sum of money deposited INTO an account is:

a)

Deposit

b)

Withdrawal

c)

Transfer

d)

Balance

9.

A Credit Card is a:

a)

Debit card

b)

Prepaid card

c)

Line of credit

d)

Gift card

10.

What is the term for a sum of money deducted FROM your account?

a)

Credit

b)

Debit

c)

Deposit

d)

Withdrawal

11.

A Debit Card is:

a)

A card that allows you to borrow money from the bank

b)

A card that allows you to make purchases using your own money

c)

A card that is used for credit transactions

d)

A card that is only used for online shopping

12.

A deposit is:

a)

A type of loan

b)

A sum of money placed in a bank account

c)

An insurance policy

d)

A financial penalty

13.

A Digital Wallet is:

a)

A physical wallet used to store cash

b)

A software-based system that securely stores users' payment information and passwords

c)

A type of cryptocurrency

d)

A digital version of a traditional bank account

14.

Endorsing a check means:

a)

Signing the back of the check to authorize its use

b)

Depositing the check into a bank account

c)

Writing a check to someone else

d)

Cancelling the check

15.

FDIC Insurance is a type of insurance that protects depositors in case of a bank failure. What does FDIC stand for?

a)

Federal Deposit Insurance Corporation

b)

Federal Deposit Investment Corporation

c)

Federal Deposit Insurance Company

d)

Federal Deposit Investment Company

16.

What is the definition of 'Interest'?

a)

A feeling of wanting to know or learn about something or someone

b)

The amount charged by a lender to a borrower for the use of assets

c)

A legal agreement between two parties

d)

A type of investment vehicle

17.

The definition of 'Maintenance Fee' is:

a)

A fee charged for the upkeep of a property or equipment.

b)

A fee charged for the initial purchase of a property.

c)

A fee charged for the sale of a property.

d)

A fee charged for the insurance of a property.

18.

The definition of 'Minimum Balance' is:

a)

The lowest amount that must be maintained in an account to avoid fees.

b)

The maximum amount that can be withdrawn from an account in a day.

c)

The average amount held in an account over a month.

d)

The total amount deposited in an account over a year.

19.

The definition of 'Mobile Deposit' is:

a)

A service that allows you to deposit checks using a mobile device.

b)

A method to transfer money between bank accounts using a mobile app.

c)

A feature to pay bills directly from your mobile phone.

d)

A way to withdraw cash from an ATM using your mobile device.

20.

A 'Money Market Savings Account' is:

a)

a type of savings account that typically offers higher interest rates than a regular savings account and may require a higher minimum balance.

b)

a checking account that allows unlimited transactions without any fees.

c)

an investment account that primarily deals with stocks and bonds.

d)

a retirement account specifically designed for self-employed individuals.

21.

A 'Money Order' is a financial instrument that allows the payee to receive a specified amount of money from the issuer. What is the definition of 'Money Order'?

a)

A financial instrument for transferring money

b)

A type of bank account

c)

A loan agreement

d)

A credit card

22.

The definition of 'Online Bill Pay' is:

a)

A service that allows you to pay bills over the internet.

b)

A method of sending physical checks through the mail.

c)

A way to pay bills using cash at a bank.

d)

A service for paying bills via phone call.

23.

An 'Outstanding Check' is:

a)

a check that has been cashed and cleared by the bank.

b)

a check that has been written but not yet cashed or cleared by the bank.

c)

a check that has been voided and is no longer valid.

d)

a check that has been lost and cannot be cashed.

24.

The definition of 'Overdraft Fee' is:

a)

A fee charged when a withdrawal from an individual's bank account exceeds the available balance.

b)

A fee charged for maintaining a bank account.

c)

A fee charged for transferring money between accounts.

d)

A fee charged for depositing money into a bank account.

25.

What is the definition of 'Overdraft Coverage'?

a)

A service that allows a bank account to go negative up to a certain limit

b)

A type of insurance for bank accounts

c)

A fee charged for maintaining a bank account

d)

A loan given by the bank without interest

26.

The definition of 'PIN' is:

a)

Personal Identification Number

b)

Private Internet Network

c)

Public Information Notice

d)

Personal Internet Name

27.

The definition of 'Principal' is:

a)

The head of a school or organization

b)

A type of financial instrument

c)

A mathematical term

d)

A legal term

28.

What is the definition of 'Reconcile'?

a)

To restore friendly relations between

b)

To break apart

c)

To ignore

d)

To misunderstand

29.

The Rule of 72 is used to estimate what?

a)

The time it takes for an investment to double at a fixed annual rate of interest.

b)

The percentage of an investment that will be lost to taxes.

c)

The number of years required to pay off a loan.

d)

The maximum interest rate an investment can achieve.

30.

The definition of 'Transaction Fee' is:

a)

A charge for conducting a transaction

b)

A reward for completing a task

c)

A penalty for breaking a rule

d)

A bonus for early payment

31.

A Traveler's Check is:

a)

a type of currency used for international travel

b)

a document that allows the holder to obtain cash in any currency

c)

a prepaid check that can be used as cash by travelers

d)

a check issued by a bank that can be cashed by travelers

32.

The term 'Underbanked' refers to individuals or households that have limited access to traditional banking services.

a)

Individuals with no bank accounts

b)

Individuals with full access to banking services

c)

Individuals with limited access to traditional banking services

d)

Individuals who only use online banking

33.

An 'Unusual Activity Alert' is:

a)

a notification about regular activities

b)

a warning about unexpected or suspicious actions

c)

an alert for scheduled maintenance

d)

a message about system updates

34.

A 'Voided check' is:

a)

a check that has been canceled and cannot be used for transactions

b)

a check that is used for making payments

c)

a check that is used for receiving payments

d)

a check that is used for international transactions

35.

A 'Wire Transfer' is a method of transferring what?

a)

Data

b)

Funds

c)

Messages

d)

Goods